1. An act whereby a person is permitted with the formalities prescribed by law, to
control to a certain degree the disposition of his estate, to take effect after his
death.
Will
Legitime
Succession
device
2. The person whose property is transmitted through succession, whether or not
he left a will.
successor
legatee
heir
decedent
3. The person called to the succession, either by the provision of a will or by
operation of law.
Heir
devisee
legatee
decedent
4. Succession which results from the designation of an heir, made in a will
executed in the form prescribe by law.
Testamentary
intestate succession
mixed succession
legal succession
5. Transmission of properties where there is no will, or if there is a will, the same
is void or nobody succeeds in the will.
testamentary succession
legal succession
mixed succession
escheat
6. Transmission of properties which is affected partly by will and partly by
operation of law.
testamentary succession
legal succession
mixed succession
intestate succession
7. An heir to a particular personal property given by virtue of will.
Legacy
devisee
successor
legatee
8. An heir to particular real property given by virtue of will.
devise
successor
devisee
legatee
9. Part of the testator’s property which he cannot dispose of because the law has
reserved it for certain heirs who are called compulsory heirs.
legitimate
free portion
legitime
estate
10. A will which is entirely written, dated and signed by the testator.
hieloglyphics
holocaust
holographic
own will
Julius died leaving the following properties:
a.
b.
c.
d.
e.
f.
g.
h.
i.
House and lot in the Philippines (mortgaged for P300,000)
1,250,000.
Condominium unit in Hongkong
1,000,000
Car in Philippines
70,000
Car in Hongkong
60,000
Franchise exercised in the Philippines
300,000.
Franchise exercised in New York, USA
25,000
Domestic shares, certificate kept in New York, USA
55,000
Foreign shares, 90% of business in the Philippines
60,000
Foreign shares, 30% of business in the Philippines, with business
situs in the Philippines.
15,000
j. Foreign shares, 60% of business in the Philippines
75,000
11. The gross estate if the decedent was a resident citizen, resident alien or a nonresident citizen2,910,000
1,620,000
1,770,000
1,750,000
12. The gross estate if the decedent was a non-resident alien (no reciprocity)2,910,000
1,825,000
1,750,000
1,320,000
13. The gross estate if the decedent was a non-resident alien (with reciprocity)A. 2,910,000
C. 1,825,000
B. 1,750,000
D. 1,320,000
Market value – date of
Transfer
Death
1. Revocable transfer:
a. Coconut plantation
P1,500,000
b. Mitsubishi pajero
1,200,000
c. Shares of stock
300,000
d. Delivery truck
400,000
2. Townhouse, in contemplation of
death
2,000,000
P1,800,000
1,000,000
220,000
450,000
2,300,000
Consideration
P1,000,000
750,000
250,000
420,000
1,500,00
8. The amount includible in the gross estate is-1,080,000
1,050,000
1,850,000
1,500,000
Actual
a. P 60,000
b. 175,000
c.
55,000
d. 225,000
Gross estate
P1,500,000
5,000,000
1,150,000
4,750,000
Deductible
60,000
175,000
55,000
200,000
Which of the following statements is correct?
The gross estate of a resident citizen decedent would not include all properties,
whether real or personal and whether within or without.
The gross estate of an American decedent who was a resident of the Philippines
includes all properties in the Philippines only.
The gross estate of a Filipino decedent who was residing in Australia would include all
properties regardless of location.
The personal property of a non-resident alien is not included in the gross estate in the
Philippines if they are intangible.
2.
In computing the gross estate of a decedent:
If he was a non-resident, but citizen of the Philippines, tangible and intangible
properties, regardless of location, shall be included
If he was a resident who was not a citizen of the Philippines, tangible and intangible
properties, regardless of location, shall be included
If he was a non-resident who was not a citizen of the Philippines, tangible and
intangible personal properties, located in the Philippines, shall be included.
All above statements are correct.
A citizen of the Philippines, single, died a resident of Canada, leaving the following
properties:
Real property in Canada, inherited from father one and one-half
years ago
P2,000,000
Personal property in the Philippines inherited from father
1,600,000
Family home in Canada
1,400,000
The gross estate subject to Philippine estate tax is:
P3,400,000
P1,600,000
P5,000,000
P3,000,000
4. Which of the following is not included in the gross estate?
Revocable transfer where the consideration was not sufficient
Revocable transfer where the power of revocation was not exercised
Transfer under a general power of appointment where the consideration was not
sufficient
Transfer under a special power of appointment
5. A revocable transfer with a consideration received:
Consideration received
P200,000
Fair market value of property at the time of transfer
300,000
Fair market value of property at the time of death
250,000
Value to include in the gross estate is:
300,000
100,000
250,000
50,000
Which of the following is not included in the gross estate?
Transfer in contemplation of death where the consideration is not sufficient
Revocable transfer where the power of revocation was not exercised
Proceeds of life insurance where the beneficiary designated is the executor and the
designation is irrevocable
Proceeds of life insurance where the irrevocably designated beneficiary is the mother
A citizen of Japan, residing in Hongkong, with properties in Hongkong and the
Philippines, had the following data on properties and rights at the time of his death
and their values.
Real estate, Hongkong
P1,000,000
Real estate, Philippines
2,000,000
Shares of stock of a domestic corporation
200,000
Shares of stock of a Japanese corporation
300,000
Shares of stock of a Canadian corporation, doing business in the
Philippines only
100,000
Philippine peso deposit in Metrobank
500,000
Receivable under a life insurance with an insurance company
doing business in Hongkong
250,000
The gross estate that should be reported in the Philippines is:
P4,350,000
P 2,800,000
P3,700,000
P4,000,000
Which statement is wrong? The gross estate shall be valued:
At its fair market value at the time of death
At its fair market value at the return is due
In real property, the zonal value, which may be higher than the assessed value
In the case of common shares of stock, at book value
Personal property with a cost of P400,000 and a fair market value at the time of death
P900,000, but subject to a mortgage of P250,000
Shall be in the taxable net estate at P500,000
Shall be in the gross estate at the decedent’s equity of P650,000
Shall be in the gross estate at P400,000
Shall be in the gross estate at P900,000
Which of the following statements is wrong? Deduction for funeral expenses shall be
allowed:
Shall in no case exceed 5% of the gross estate
Shall in no case exceed P200,000
Only if paid out of the estate
For a non-resident alien, only that which was actually incurred in the Philippines
ITEMS 17 THROUGH 19 ARE BASED ON THE FOLLOWING INFORMATION:
A resident citizen died with properties constituting his gross estate of P5,000,000.
Actual funeral expenses amounted to P220,000 and other expenses and claims which
are deductions from the gross estate amounted to P1,200,000.
17. The allowable deduction for funeral expenses is:
220,000
200,000
250,000
None given
18. The taxable net estate is:
a. P3,600,000
c. P 3,700,000
b. P2,600,000
d. P3,580,000
19. The distributable estate was diminished by:
a. P 1,420,000
c. P 1,200,000
b. P 1,400,000
d. Some other amount
22. Statement 1: Losses can be deducted only if incurred during the settlement of the
estate.
Statement 1: Losses can be deducted only if the property lost is included in the gross
estate.
both statements are true.
both statements are false.
the first statement is true, but the second statement is false.
the first statement is false, but the second statement is true.
23. Which statement is wrong? Losses are deductible from the gross estate:
if arising from earthquake.
if not compensated by insurance or other form of indemnity.
if the loss arises from sale of capital assets.
must be incurred during the settlement of the estate.
24. A resident Filipino, died on May 5, 2012 and his estate incurred losses as follow:
1st loss: From fire on July 2, 2012 of improvement on his property not compensated by
insurance.
2nd loss: From flood on July 2, 2011 of household furniture also not compensated by
insurance.
1st loss is not deductible and 2nd loss is deductible.
both losses are not deductible.
both losses are deductible from gross estate.
1st loss is deductible and 2nd loss is not.
Which statement is correct? Real property with a cost of P300,000 and a fair market
value at the time of death of P1,000,000, but subject to mortgage of P200,000.
Shall be in the taxable net estate at P800, 000.
Shall be in the gross estate at the decedent’s equity of P800, 000.
Shall be in the gross estate at P300, 000.
Shall be in the gross estate at the decedent’s equity of P100, 000.
Which statement is correct? Claims against the estate, as deduction from the gross
estate:
Represents obligations enforceable during the lifetime of the decedent.
Should always be evidenced by a notarized document.
is sufficient for deductibility if a valid obligation under the law on obligations.
If unpaid mortgage of a non-resident, not citizen of the Philippines, the property
should be included in the Philippine gross estate.
Which of the following is deductible from the gross estate?
Income tax paid on income received after death.
Unpaid property taxes accrued in the year of death.
Donor’s tax accrued after to death.
Estate tax paid to a foreign country.
Which is wrong? Deduction for transfers for public purpose:
Means legacy in a last will and testament to the government.
Means device in a last will and testament to the government.
Includes properties transferred inter vivos.
will not include legacies to charitable institutions.
In determining the taxable net estate of a decedent, which of the following rules is
correct?
Real estate abroad is not included in the gross estate of a decedent who was a resident
alien.
Vanishing deduction must be subject to limitations.
Shares of stocks being intangible property shall be included in the decedent’s gross
estate wherever situated.
Funeral expenses are deductible to the extent of 5% of the total gross estate but not
exceeding P100,000.
32. Which of the following statement is correct? Property subject to vanishing
deduction should be:
a. If the decedent was a not citizen nor resident of the Philippines, the property
should not be located in the Philippines.
b. If the decedent was a citizen or resident of the Philippines, the property may
not be located in the Philippines.
c. If the decedent was a citizen but a resident of the Philippines, the property
need not be located in the Philippines.
d. If the decedent was a citizen and resident of the Philippines, the property
should be located in the Philippines.
A citizen of the Philippines and resident of Baguio City, died testate on May 10, 2013.
Among his gross estate are properties inherited from his deceased father who died on
April 4, 2010. What percentage of deduction will be used in computing the amount of
vanishing deduction?
80% of the value taken as basis for vanishing deduction.
100% of the value taken as basis for vanishing deduction.
60% of the value taken as basis for vanishing deduction.
40% of the value taken as basis for vanishing deduction.
35. Statement 1: For a vanishing deduction, there should always be two deaths within
five years from receipt of property.
Statement 2: For a vanishing deduction, there should always be two transfer of
property within five years whether the first transfer be gratuitous or onerous.
a. Both statements are true.
b. Both statements are false.
c. The first statement is true, but the second statement is false.
d. The first statement is false, but second statement is true.
37. Which statement is wrong? For a non-resident, not citizen of the Philippines:
a. There are no special deductions from the gross estate
b. There can be no deduction for funeral expenses entirely incurred outside the
Philippines.
c. There can be a vanishing deduction.
d. There can be a deduction for transfer for public use.
38. Only once statement is correct. Deduction for family home:
a. Shall be allowed if the family home is in the Philippines.
b. Shall be at a maximum of P1,000,000, based on cost.
c. May be allowed for family homes (one in the City and another in the
Province), both in the Philippines and with certificates of the Barangay Captains.
d. Shall be deducted at lesser than P1,000,000 if, with vanishing deduction and
unpaid mortgage or indebtedness, the value of the family home is already reduced to
zero.